A Santa Maria perspective
Seven mistakes when selling a business and how to prepare to avoid them
Areas to review when organizing a potential sale with clear information and realistic expectations.
A sale requires attention to the business, the negotiation, and your own goals. These seven points provide a preparation checklist; they are not a statistical ranking or a guarantee of results.
1. Exploring options only when the need is urgent
If you have time, start learning before an immediate decision is necessary. If the situation is already urgent, explain it to your advisors so you can assess realistic options without adding unnecessary pressure.
2. Sharing information without a plan
Define how sensitive documents will be protected and who needs access. Coordinate communication with your advisors, considering applicable obligations; there is no universal rule to wait until signing before informing people.
3. Leaving operations unattended
Assign responsibilities so customers, collections, suppliers, and the team remain supported during the process. Make time for negotiations without losing visibility into results.
4. Setting expectations without understanding valuation
Your company's history matters, but a proposal needs verifiable assumptions. Read our valuation guide and ask how each estimate was reached.
5. Comparing price alone
Consider payments at closing, conditional amounts, responsibilities, and your subsequent role. A higher offer is not automatically better, and a lower one is not automatically safer.
6. Presenting unsupported figures
Organize documents and explain differences with your accountant. If information is missing, identify it and agree on how to obtain it. Clarity is preferable to presenting something as final when it still needs review.
7. Not assessing the buyer
Ask about financing, outstanding approvals, experience, and operating plans. For an emerging firm, distinguish the team's experience from the organization's record. Assess whether the proposal also fits your priorities.
The next step
Prepare a list of open matters and decide with your advisors what needs resolving before you proceed. Exploring a sale does not oblige you to accept one.
Santa Maria Ventures seeks to acquire and operate established Panamanian businesses for the long term. To understand our approach as a potential buyer, start a confidential conversation, with no cost or obligation.
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